“Those who bought and, implicitly, those who brought about growth, are betting on a rise for several days. It is quite possible that we will witness a rallying in the coming sessions next week, due to the fact that there are investors who want to refill their portfolios,” said Paul Brendea, Prime Transaction Broker.
The BET index which monitors the evolution of the ten most liquid companies, rose 5.3 percent, while the BET-NG index of the energy sector ended with an 8.6 percent rise, after reaching up to 11 percent in mid-session. However, brokers continue to be reserved about longer-term perspectives, saying that yesterday’s earnings on the stock exchange represent next to nothing on a market that has been hit so hard in 2008.
“Yesterday’s growth is a natural reaction of investors to the drops in the past nine sessions. It is important to mention, however, that whoever bought now, is assuming a high risk, in the present context of very high volatility,” added Brendea. “Furthermore, we must not become too enthusiastic. The situation remains difficult. For example, the BET would have to rise 400 percent compared to the present level for the market to be considered ‘healed,’” said Brendea.
The BET-FI index of the five financial investment companies (SIF) gained 7.4 percent Tuesday, with the appreciation somewhat slowed by weaker growth of SIF Transilvania (SIF3), compared to the other four SIFs. SIF3 shares gained 1.4 percent, for the highest market activity of RON 4.5 million (€1.2 mln), after having been traded at a price lower than the reference price throughout most of the session. “The SIFs usually evolve similarly. SIF3 is weaker because investors are feeling supplementary risk connected with this issuer, before a final court decision is made about its capital increase. Few are willing to risk sitting on blocked shares for a prolonged period,” explained Paul Brendea.
